What
the Special Guaranty Provision Means
The Special Guaranty provision of the RRA states that the
total monthly benefits payable (including any vested dual
benefits but excluding any supplemental annuity) to you
and your family will not be less than the monthly amount
which would be payable under the SS Act if railroad service
after 1936 were credited as "employment" under
the SS Act.
The Special
Guaranty rate is referred to as an "increase"
because the employee must be entitled to an RR Act employee
annuity and the Special
Guaranty rate must exceed the regular RRA formula
rate to apply. There are
two basic types of Special
Guaranty computations – one type for disability annuitants
with a disability freeze and one type based on the employee’s
age and railroad service.
Special
Guaranty Based On Disability
You may be entitled to the Special
Guaranty computation at any age if you are eligible
for a disability freeze under SS Act rules. It means that
you are considered totally and permanently disabled for
all employment, the disability is expected to last at least
12 months, and you have the required Quarters
of Coverage under SS Act rules.
The disability freeze is determined
based on the medical evidence submitted for you and based
on your earnings record. All of your earnings from railroad
and social security-covered employment are used as if they
were earnings under the SS Act.
The disability freeze is further explained
in booklet RB-1D,
Employee Disability
Benefits.
Your Special
Guaranty benefit based on disability
is not reduced for age.
Special
Guaranty Base On Age
You may be entitled to the Special
Guaranty computation based on age if you have attained
age 62 for a full month and you have an SS Act Insured Status.
See booklet RB-1,
Employee Age and Service
Annuities for an explanation of SS
Act Insured Status.
When
the Increase Can Begin Based on Disability Freeze
The RRA limits the points at which
your annuity can be tested for the Special
Guaranty increase.
- You Have a Disability
Freeze - The Special
Guaranty increase can begin the later of:
- your annuity beginning date; or,
- if a disability waiting period is required, the first
full month after the five-month disability waiting period.
(The waiting period begins with the date of your disability
onset and extends five full calendar months. If you
had a disability freeze in the past which terminated
based on recovery from disability, a new waiting period
may not be required).
- You Do No Have a Disability Freeze - The Special
Guaranty increase would be based on your age as explained
in the next section.
When
the Increase Can Begin Based on Age
The increase can begin the later
of:
- your annuity beginning date;
- the first full month you are age 62; or,
- the first full month your spouse, who was married to
you on your employee annuity beginning date, is age 62
and meets the other spouse eligibility requirements.
How
the Special Guaranty is Paid
If both you and your spouse
are entitled to RRA annuities, the Special
Guaranty increase is divided between the employee
and spouse annuities. You receive 2/3 of the family total
(excluding any divorced spouse) as your monthly annuity
rate. Your spouse receives 1/3 of the family total (excluding
any divorced spouse) as the spouse monthly annuity rate.
If you are not married, or your spouse does not meet the
requirements for an RRA spouse annuity, the total family
rate (excluding a divorced spouse) is paid to you as your
annuity rate.
An RRA divorced spouse annuity is not increased under the
Special Guaranty.
When
The Special guaranty Increase Is No Longer Payable
Effective the month the regular RRA annuity computation
exceeds the Special
Guaranty rate, in other than work deduction cases, the
Special Guaranty rate will no longer be payable.
This could occur:
- when family members become entitled to other benefits
(see Part
IV); or,
- due to terminating events for family members (see Part
V).
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